The recently passed health-care “reform” law was roundly touted by proponents as a way to rein in health-care spending costs. But, now, even the Associated Press is acknowledging that many prices will rise.
According to an AP article, the following is likely under the new law:
Insurance premiums are likely to keep going up over the next few years. Experts predict that the law’s early benefits — such as expanded coverage for children and young adults — could nudge rates a little higher than would otherwise have been the case. Also, insurers and medical providers could try to raise their prices ahead of big shifts set for 2014. … More than 30 million previously uninsured people would gain coverage quickly — and they’ll start going to the doctor for care previously postponed. Increased demand will push up health care spending, putting more pressure on premiums. The cost controls in the bill are unlikely to provide much of a counterweight. Democrats scrambling to line up votes for the final bill weakened a provision that would have enforced austerity through a hefty tax on high-cost employer coverage.
In short, increased demand for a product leads to higher prices. Increased taxes on higher quality insurance plans added to this creates a situation in which the demand is up but increased quality is punished.
This situation is what critics of the “reform” plan were warning before the bill was passed into law. But, the fact that the AP is acknowledging the economic consequences of the law now is revealing.